FMG - Fortescue Ltd

[Frankhalo]

Mac bank & BNB would not touch with a ten foot pole these days, there is not enough transparency IMO with these Investment banks dealings and balance sheets, and when things look like there going belly up mom and dad holders are left carrying the bag while the big boys in the know have long gone. My opinion only, I sticking to the black stuff in the ground, has looked after me very well and will continue for months, years, decades to come.

This helps explain ann Friday:

Ausdrill Mining Services

Also today, Ausdrill's wholly-owned subsidiary Ausdrill Mining Services Australia (AMSA), received a letter of intent from the Fortescue Metals Group to hire ten 100-tonne Caterpillar dump trucks for a minimum period of six months. This is a significant milestone for AMSA as it is the first major contract it has been awarded since acquiring its Australian contract mining fleet late last year. The contract complements Ausdrill's three year drill and blast contract with Fortescue Metals Group.

Regardless DOW big bounce on Friday, back over $10 plus Monday

 

[Go Nuke]

It looks like the rail access to BHP Tinto is not going well for FMG, hey maybe its time to make some lemonade.

I know this is an announcement from Brockman Resources, but will this have an impact on FMG gaining access to BHP & RIO's railway??

http://imagesignal.comsec.com.au/asxdata/20080613/pdf/00850525.pdf

 

[CoffeeKing]

I plucked this from the praic public consultation paper:

http://www.dtf.wa.gov.au/cms/uploadedFiles/praic_public_consultation_issues_paper_june2008f.pdf

"It is for iron ore haulage only – the Regime does not extend beyond the provision of Haulage (i.e. the scope of the Regime does not extend to loading, unloading, mining and port facilities/services) and does not extend to haulage of non-iron ore products.
Haulage of non-iron ore products will need to be negotiated with a Provider under current access arrangements (e.g. State Agreement Act provisions)."

If or when third party access comes of age, reading the above will certainly be quite costly for the juniors as the way I read it means a line to the mine,
a loading facility, something and somewhere to unload the ore and then stockpile it, and then get it on a ship at a port.
It seems they are only getting a "haulage contract" to transport their ore and nothing else of benefit, but then again if they get that much it's a start to maybe getting big backers to fork out some cash.

I vote for the juniors having a win

 

[renim]

I know this is an announcement from Brockman Resources, but will this have an impact on FMG gaining access to BHP & RIO's railway??

http://imagesignal.comsec.com.au/asxdata/20080613/pdf/00850525.pdf

FMG has it's own 'extras' and rail stock, and would not like to pay/deal with/co-ordinate with bhp/tinto. A bit like sharing a road when you own a car but are only allowed on the road in a taxi. So for a long term perspective, FMG would basically still need to duplicate the rail for its own requirements.

The juniors don't have a 'road or a car' and being allowed in BHP Tinto's taxi would suit them just fine.

 

[Miner]

Please do not laugh for the two extracts from two reputed brokers on FMG,
Where is the science or accounting behind these two stories
So ironic or stupidity at least one of them is saying


STEVEN HING
NOVUS CAPITAL

BUY RECOMMENDATION
Fortescue Metals Group (FMG)

The iron ore producer has dipped from $12 to trading below $10 on June 13. Expect support at these levels. I am a buyer of iron ore stocks, and firmly believe that FMG represents good value given an easier entry for Chinese investors compared to BHP Billiton or Rio Tinto
second recommendation published in same Compare Shares newsletter

SELL RECOMMENDATION


Fortescue Metals Group (FMG)

While FMG will be one of those companies to benefit from a strong bulk commodities market, we struggle with the price and continue to see better value elsewhere in the sector. Expect it to under perform, and our price target is $4.91 a share.


Anthony Black is a long-standing journalist, having worked in newspapers for more than 20 years. He was the Sunday Herald Sun’s finance editor for eight years and his reports were published in News Limited papers across Australia.

 

[Prospector]

BUY RECOMMENDATION
Fortescue Metals Group (FMG)
firmly believe that FMG represents good value given an easier entry for Chinese investors compared to BHP Billiton or Rio Tinto

SELL RECOMMENDATION
Fortescue Metals Group (FMG)
Expect it to under perform, and our price target is $4.91 a share.
Anthony Black is a long-standing journalist, having worked in newspapers for more than 20 years. He was the Sunday Herald Sun’s finance editor for eight years and his reports were published in News Limited papers across Australia

But isn't this reflective of the whole FMG story and probably says more about what they think of Andrew Forrest than an iron-ore company. One likes the guy, the other one doesn't, maybe even got burnt in the past?

You know, if the second guy was such an expert in finance, then wouldnt he be doing more than just writing in a magazine. He is a journalist not a person who deals actively in the share market. Maybe it is a case of 1 year being repeated 20 times.

And this post may be more reflective of my hope for FMG rather than a true critical analysis of the company's worth!:

 

[Miner]

But isn't this reflective of the whole FMG story and probably says more about what they think of Andrew Forrest than an iron-ore company. One likes the guy, the other one doesn't, maybe even got burnt in the past?

You know, if the second guy was such an expert in finance, then wouldnt he be doing more than just writing in a magazine. He is a journalist not a person who deals actively in the share market. Maybe it is a case of 1 year being repeated 20 times.

And this post may be more reflective of my hope for FMG rather than a true critical analysis of the company's worth!:

I tend to agree with you Prospector.
I have seen Andrew very closely at work. He is a unique and an unconventional character, down to earth and has lot of guts. He does not have the so called Harvard graduate class but produces better than them. That is why lot many black suit people envy him and express through their writing. I know while in Anaconda people lost lot of money by investing on his words but there is always a learning (even many have paid for that) curve and FMG is a great future for Australia and China and investors too.

Let us wait and see what comes in May report in next week.

 

[njc.corp]

I tend to agree with you Prospector.
I have seen Andrew very closely at work. He is a unique and an unconventional character, down to earth and has lot of guts. He does not have the so called Harvard graduate class but produces better than them. That is why lot many black suit people envy him and express through their writing. I know while in Anaconda people lost lot of money by investing on his words but there is always a learning (even many have paid for that) curve and FMG is a great future for Australia and China and investors too.

Let us wait and see what comes in May report in next week.

I think people dont like forrest because he is too-rich-its common for the human mind to think negative all the time-

yes-he fail-so what-who is perfect-i know i am not

my dad use to tell me-1 legal failure is 2 steps forward as u learn from your mistakes-

Most of the wealthy people have a story in common-they always fail and learn quick

i also thing people are not looking at the picture in a good way-they are asking who is this bloke and how come he made his money in 5-7 years?

typical gossip from the hater's-

newspapers-they just want to sell papers nothing more nothing less-

Thanks

Nick--

 

[Nesa]

Fortescue Plans to Triple Iron Ore Production, Review Says

By Angela Macdonald-Smith

June 17 (Bloomberg) -- Fortescue Metals Group Ltd. plans to triple annual ore output in the first expansion of its Pilbara project to 160 million metric tons, rather than doubling it, the Australian Financial Review said, citing Executive Director Graeme Rowley.

The mining company, which is ramping up production to 55 million tons a year, needs to produce 500,000 tons a week in four consecutive weeks for the project to be deemed complete, the newspaper reported. That is likely to occur in the second half of July or early August, enabling Fortescue to approve the first of a series of planned expansions, it said, citing Rowley.

While an initial expansion to 110 million tons had been planned, the company may now increase that by adding two iron ore dumpers instead of one and dredging for two extra wharfs instead of one, it said, citing Rowley.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
Last Updated: June 16, 2008 17:47 EDT

http://www.bloomberg.com/apps/news?pid=20601080&sid=a.q3QMPZ2sUQ&refer=asia

 

[njc.corp]

Fortescue Plans to Triple Iron Ore Production, Review Says

By Angela Macdonald-Smith

June 17 (Bloomberg) -- Fortescue Metals Group Ltd. plans to triple annual ore output in the first expansion of its Pilbara project to 160 million metric tons, rather than doubling it, the Australian Financial Review said, citing Executive Director Graeme Rowley.

The mining company, which is ramping up production to 55 million tons a year, needs to produce 500,000 tons a week in four consecutive weeks for the project to be deemed complete, the newspaper reported. That is likely to occur in the second half of July or early August, enabling Fortescue to approve the first of a series of planned expansions, it said, citing Rowley.

While an initial expansion to 110 million tons had been planned, the company may now increase that by adding two iron ore dumpers instead of one and dredging for two extra wharfs instead of one, it said, citing Rowley.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
Last Updated: June 16, 2008 17:47 EDT

http://www.bloomberg.com/apps/news?pid=20601080&sid=a.q3QMPZ2sUQ&refer=asia

Nesa-thanks for the good read-

wow-

does this article represent that they have more iron ore then they told the public/world?

thats what i am asking myself-it might be a bit far fetch but who care's

Also some ? for the experts

whats bhp pumping out a year in iron ore

and also rio

Any help would be nice

Thanks

Nick--

 

[Nesa]

Nesa-thanks for the good read-

wow-

does this article represent that they have more iron ore then they told the public/world?

thats what i am asking myself-it might be a bit far fetch but who care's

Also some ? for the experts

whats bhp pumping out a year in iron ore

and also rio

Any help would be nice

Thanks

Nick--

BHP's iron ore production for the quarter was a record 28.03 million metric tons.

Rio Tinto said its full year iron ore production for 2007 rose 9 percent from the previous year to a record 144.7 million metric tons (159.5 million tons).

The miner's iron ore production in the fourth quarter was 38.96 million tons, up 11 percent from a year ago, the company said.

gives you some idea.

 

[njc.corp]

BHP's iron ore production for the quarter was a record 28.03 million metric tons.

Rio Tinto said its full year iron ore production for 2007 rose 9 percent from the previous year to a record 144.7 million metric tons (159.5 million tons).

The miner's iron ore production in the fourth quarter was 38.96 million tons, up 11 percent from a year ago, the company said.

gives you some idea.

Thanks for that-thats what i wanted to know-

i must say as fmg holder-its a big ask to even think about 160 mtpa

Thats all i got to say really as i dont have any facts on wether they will or won't

Good Luck-come this far-

Thanks

Nick--

 

[Go Nuke]

Lets not forget one thing...RIO and BHP are diversified companies!

If Fe falls...FMG will have nothing to fall back on.

Quote:
Originally Posted by Miner
BUY RECOMMENDATION
Fortescue Metals Group (FMG)
firmly believe that FMG represents good value given an easier entry for Chinese investors compared to BHP Billiton or Rio Tinto

SELL RECOMMENDATION
Fortescue Metals Group (FMG)
Expect it to under perform, and our price target is $4.91 a share.
Anthony Black is a long-standing journalist, having worked in newspapers for more than 20 years. He was the Sunday Herald Sun’s finance editor for eight years and his reports were published in News Limited papers across Australia

Thanks for that bit of humour

 

[agro]

By Angela Macdonald-Smith

June 17 (Bloomberg) -- Fortescue Metals Group Ltd. plans to triple annual ore output in the first expansion of its Pilbara project to 160 million metric tons, rather than doubling it, the Australian Financial Review said, citing Executive Director Graeme Rowley.

The mining company, which is ramping up production to 55 million tons a year, needs to produce 500,000 tons a week in four consecutive weeks for the project to be deemed complete, the newspaper reported. That is likely to occur in the second half of July or early August, enabling Fortescue to approve the first of a series of planned expansions, it said, citing Rowley.

While an initial expansion to 110 million tons had been planned, the company may now increase that by adding two iron ore dumpers instead of one and dredging for two extra wharfs instead of one, it said, citing Rowley.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a.q3QMPZ2sUQ&refer=asia


looks as though they have given some indication to the media as to what they are going to do as far as ramp up,

will just have to wait for the announcement to come out to have it formalized


and re - Go Nuke: If Fe Falls??


well, when they start making building and infrastructure out of plastic, that's when i will sell my FMG

 

[renim]

FMG has repeatedly referred to expansion to ~100mtpA and then to 200mtpA.
An expansion to 160mtpA is like a big jump. First 4 years ~ 40years Rio Tinto growth. Next 4 years is to catch up to Rio Tinto todays production.
That will keep the stock analysts valuations ahhh variable. Then we will see with hindsight, who was good, and who is not.

FMG is not diversified, it makes it easier to value, but more vulnerable and less hedged.

Personally i tend to have a 5 year horizon with FMG and a 200mtPA capacity. I must be an optimist.
or crazy, i also bought into BBP after the meltdown

 

[njc.corp]

Good morning pople

found an other article that may be in interest to you guy's

Cazaly Resources Ltd. has agreed to work with Fortescue Metals Group to develop a potential A$200 billion ($189 billion) iron ore deposit it is trying to wrest from Rio Tinto Group, the Australian newspaper reported.

Rhodes Ridge, discovered in 1950 in Western Australia, holds 2 billion tons of ore, making it one of the world's largest untapped deposits, the newspaper said.

http://www.bloomberg.com/apps/news?pid=20601081&sid=anindSUWDbc8&refer=australia

Thanks

Nick--

 

[Nesa]

Good morning pople

found an other article that may be in interest to you guy's

Cazaly Resources Ltd. has agreed to work with Fortescue Metals Group to develop a potential A$200 billion ($189 billion) iron ore deposit it is trying to wrest from Rio Tinto Group, the Australian newspaper reported.

Rhodes Ridge, discovered in 1950 in Western Australia, holds 2 billion tons of ore, making it one of the world's largest untapped deposits, the newspaper said.

http://www.bloomberg.com/apps/news?pid=20601081&sid=anindSUWDbc8&refer=australia

Thanks

Nick--

Details of the agreement can be found in this announcement:

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00851862

 

[gav]

CAZ shares soared today...

But the thing I dont understand: Why would RIO sit on this for so long and not do anything about it?

 

[agro]

CAZ shares soared today...

But the thing I dont understand: Why would RIO sit on this for so long and not do anything about it?

who knows the reason ?

all i know is the news keeps getting better for Fortescue lol

once they get the support of the smaller iron ores, they will only get better

 

[jayinoz]

Good morning pople

found an other article that may be in interest to you guy's

Cazaly Resources Ltd. has agreed to work with Fortescue Metals Group to develop a potential A$200 billion ($189 billion) iron ore deposit it is trying to wrest from Rio Tinto Group, the Australian newspaper reported.

Rhodes Ridge, discovered in 1950 in Western Australia, holds 2 billion tons of ore, making it one of the world's largest untapped deposits, the newspaper said.

http://www.bloomberg.com/apps/news?pid=20601081&sid=anindSUWDbc8&refer=australia

Thanks

Nick--

Thanks for that fast info this morning Nick- I got into Cazaly straight away- it was like a xmas bonus. Now not sure whether to wait till they try their luck in court to get control of the iron ore mining rights or profit out.

Maybe take 50% out then leave the rest with them and see how they go. Already had FMG shares yet many analysts saying well over priced- so was becoming nervous about FMG.

Not so if the can extract the 200B $ in Iron Ore. If they do not win in court I would bank on a decrease to around $8-9 again. Yet Tiggy Fortesque seems to be a miracle worker in the past year. Who knows yet to date FMG has made my portfolio look at least half decent.

Anyone know how long the court ruling may take??????????

All the best Jeremy